It has come to the attention of the NGCOA that Acushnet, the parent company for Footjoy, Titleist and Pinnacle, has added a new "security agreement" clause to its master customer contract.
This new clause conveys to Acushnet a security interest, or a lien, against all of a customer's personal property. This lien is not limited to just personal property within a pro shop, but includes all accounts, chattel paper, commercial tort claims, deposit accounts, equipment, fixtures, general intangibles, goods, inventory, investment property, receivables and all contract rights.
The NGCOA has reached out to Acushnet and addressed its members' concern with the clause. We acknowledged the company's fiduciary responsibility in a retail market currently going through a transformation, particularly in the off-course marketplace, but also our members represent the most stable segment of the golf operation industry. The following is Acushnet's response:
"Regarding Acushnet Company's Direct Account Application and related Security Agreement, we believe it best to have specific conversations about these documents directly with our customers in a one-on-one manner. Each situation and business relationship is unique and we believe it would be counterproductive for us to provide generalized direction or commentary on this subject.
As I'm sure you and the NGOCA owners understand, Acushnet has a fiduciary responsibility to manage risk and protect its financial interests. We believe this is ultimately in all of our best interests as this is central to our ability to continue to sell and create demand for premium, high performance Titleist and FootJoy products that your members count on to service their customer's equipment needs. "
The NGCOA would like to remind members that you are their customer. It is within your right to question this contract and negotiate all clauses therein. You can address this with your Acushnet sales representatives or their credit manager. The association will continue to support its members by encouraging Acushnet to respect their long-term customers and not tie their hands by requiring them to leverage their entire business against such a minimal liability as a few line items of their retail inventory.
